What affects your credit score
? How do your actions cause your credit score to fluctuate, impacting your financial well-being? Knowing the things that affect your credit score can put you in control of your economic future.

A credit monitoring service like ScoreSense can help you manage your credit score effectively. With tools provided by ScoreSense, it’s easy to see how canceling accounts, paying off credit cards, and taking out new loans would impact your credit score – before you actually take such actions in the real world.

To some extent, the answer to what affects your credit score can vary from person to person and over time as well. The consumer credit reporting agencies tend to group people with situations together and calculate scores differently among these groups. For instance, if you are a young person just starting out without much credit history, you will be scored differently than someone who has years of borrowing history.

One of the most important factors in determining your credit score is your debt-to-credit ratio, which is the amount of money you owe vs. the amount of credit available via the lines of credit extended to you. What affects your credit score negatively is being maxed out on credit cards – that means you’ll have a high debt-to-credit ratio.

Paying down your revolving credit – credit cards – will improve your credit score. However, canceling credit cards, especially before they are paid off, could lower your credit score because you have less credit available but the same amount of debt. Consolidating debts onto a single card could also potentially have a negative impact. This is why it is so important to understand what affects your credit score.

Of course, your payment history is the single biggest factor in determining your credit score. Making payments on time is what affects your credit score in a positive way. If you regularly pay late, not only are you generating late fees, you are damaging your credit score.

Do student loans affect your credit score? They do if they are private loans. Federal student loans obtained as financial aid generally are not affected by nor do they affect your credit score.

To better understand what affects your credit score and learn more about credit and credit reports, visit www.scoresense.com today.

Posted by:ScoreSense

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